The infrastructure investor has begun seeking financing for the potential acquisition of a stake in MMC Ports, part of the MMC Corp conglomerate controlled by tycoon Syed Mokhtar Al-Bukhary, one of the sources said.
A 49% stake in MMC Ports would be worth RM14.63 billion (US$3.1 billion), although it is not clear yet what kind of premium will be agreed upon by the two companies.
Talks are ongoing and there is no certainty that a deal will be reached, said the sources, who declined to be named as the discussions were confidential.
A spokesperson for GIP in New York declined to comment. MMC Corp did not immediately respond to a request for comment.
Founded in 2006, New York-headquartered GIP manages more than US$100 billion (RM471.8 billion) in assets and has a portfolio including Britain’s Gatwick airport, the Port of Melbourne, and major offshore wind projects.
If completed, GIP’s Malaysian investment will add to the hectic pace of mergers and acquisitions in the infrastructure sector globally in recent years, with soaring demand for logistics making the asset class increasingly popular.
As part of that trend, GIP itself is being acquired by BlackRock for US$12.5 billion (RM59 billion).
Just days after the announcement by BlackRock, which manages US$10 trillion (RM47.18) across all markets, US private equity firm General Atlantic said on Tuesday it agreed a deal to buy UK-based infrastructure investor Actis.
Global private equity firms, sovereign wealth funds, and other investors have been pouring money into Asian infrastructure projects in recent years to get exposure to assets that are seen offering stable, long-term and inflation-beating returns.
Reuters reported in May last year, citing sources, that Syed Mokhtar, ranked as the 11th richest man in Malaysia by Forbes, was looking at bringing an investor into MMC Ports.
The company has seven ports in Malaysia – Port of Tanjung Pelepas, Johor Port, Northport, Penang Port, Tanjung Bruas Port, SPT Services and Andaman Port, according to its website.
All are located along the Straits of Malacca, one of the world’s busiest shipping lanes.